Ecuador needs USD $10.931 million to ‘transform’
Updated: 30 Jan 2021 – 0:03
The Inter-American Development Bank (IDB) identified 11 projects with transformative potential. The problem is access to financing. The Inter-American Development Bank (IDB) estimates that Ecuador needs USD $10.931 million for the execution of 11 projects that could contribute to change the functioning of strategic sectors and reactivate the economy.
In the study “ Transformational Projects: Andean Region: Ecuador,” published in December 2020, the IDB details projects in the transportation, energy, water, and sanitation sectors.
In transportation, the multilateral organization estimates an investment of USD $5.666 million to:
- The construction of a six-lane highway between Quito-Guayaquil and the Quito-Santo Domingo section.
- The construction of the multimodal transport system integrated into the Quito Metro.
- The construction of logistics corridors to boost merchandise trade.
The IDB includes four projects in the energy sector. The investment would amount to USD $2.100 million to:
- The elimination of the use of fossil fuels in Galapagos.
- Massive use of electricity for electric mobility and to power induction cookers .
- Transmission works for regional electrical integration.
- Works for universal access to electricity.
While for four transformative projects in the water and sanitation sector, an investment of USD $3.165 million is required :
- Infrastructure for the modernization of water resources management.
- Construction of new water and sanitation systems in the rural sector in Ecuador.
- Decontamination of the rivers of Quito .
- Solid waste management through the closure of open dumps and the implementation of sanitary landfills.
And the money?
The study does not specify whether the IDB is interested in financing the 11 projects. But, on the contrary, it does mention some of the problems that Ecuador would have in obtaining the resources.
The IDB says, for example, that in the case of the construction of the Quito-Guayaquil highway, the government could have difficulties ” in finding sources of financing .” The reason? It is an expensive work, which exceeds USD 1,575 million.
Another work that would have economic restrictions due to its high price is the construction of the multimodal transport system integrated into the Quito Metro, according to the IDB.
Although the multilateral body warns that the work is one of the priorities of the Municipality of Quito.
The IDB also focuses its analysis on the financial difficulties that the Government will have in obtaining USD 1.2 billion: USD 700 million for the construction of transmission systems for regional electricity integration and USD 500 million for the infrastructure that allows universal access to electricity. .
“The economic and fiscal situation could limit access to financing resources, so concessional resources should be sought.” IDB
According to the agency, the Government will also have difficulties borrowing and financing the construction of new water and sanitation systems in the rural sector, for USD 2 billion.
Informing and sharing news on marine life, flora, fauna and conservation in the Galápagos Islands since 2017
© SOS Galápagos, 2021